Video: Payday advance loans lead to endless cycle of debt

CBS Evening News produced this excellent new segment video entitled Payday Advance Loans Seem Simple, But Can Lead To Endless Cycle Of Debt

"In the current state of the economy, about 2,600 Americans a day file for bankruptcy. Others are turning to a financial quick fix called "payday loans."

They've now grown into a $59 billion industry.

Six states - Arkansas, Georgia, New Hampshire, North Carolina, Ohio and Oregon as well as the District of Columbia - have now effectively banned "payday loans". Incredibly, Ohio's payday lenders are asking voters to reinstate their 391% interest rates --- eliminating the new 28% interest rate cap just passed in HB 545.

The payday loan issue is yet another reason to ensure that Democratic candidates are elected to office this fall:

• Ted Celeste, District 24 Ohio House representative and candidate for re-election, is solidly behind regulating the payday lending industry and co-sponsored a bill this year to cap payday lender interest rates.
• Mary Jo Kilroy's opponent in the race for the 15th Congressional District, former bank lobbyist Steve Stivers, previously opposed efforts to effectively regulate the payday lending industry claiming that it would actually hurt consumers to limit this brutal form of usury. When it became clear that the G.O.P. couldn't prevent genuine payday regulation, Stivers decided to own it instead, attempting to defuse a powerful campaign issue in the general election. Comparing campaign donations between the candidates, it's not hard to see how Stiver's could easily change his mind back again after the election ---- but this time, if elected, his influence would be at the federal level.